Income Tax Slabs 2025-26: Complete Guide with Examples

Income Tax Slabs FY 2025-26

The government offers two tax regimes. New regime is default but you can opt for old regime if it saves more tax.

New Tax Regime (Default)

Income RangeTax Rate ₹0 - ₹3,00,000Nil ₹3,00,001 - ₹7,00,0005% ₹7,00,001 - ₹10,00,00010% ₹10,00,001 - ₹12,00,00015% ₹12,00,001 - ₹15,00,00020% Above ₹15,00,00030%

Key Points:

Standard deduction: ₹75,000

Section 87A rebate: Tax-free up to ₹7 lakh taxable income

No other deductions except employer NPS contribution

Old Tax Regime (Optional)

Income RangeTax Rate ₹0 - ₹2,50,000Nil ₹2,50,001 - ₹5,00,0005% ₹5,00,001 - ₹10,00,00020% Above ₹10,00,00030%

Available Deductions:

80C: ₹1,50,000 (ELSS, PPF, Insurance, etc.)

80D: Health Insurance (₹25K-₹1L)

80CCD(1B): NPS ₹50,000

24(b): Home loan interest ₹2,00,000

HRA Exemption

Standard Deduction: ₹50,000

Tax Calculation Examples

Example 1: ₹8 LPA Salary (New Regime)

CalculationAmount Gross Salary₹8,00,000 Standard Deduction-₹75,000 Taxable Income₹7,25,000 Tax on ₹3L (0%)₹0 Tax on ₹4L (5%)₹20,000 Tax on ₹25K (10%)₹2,500 Total Tax₹22,500 Add: 4% Cess₹900 Total Tax₹23,400

Example 2: ₹12 LPA Salary (Comparison)

ComponentNew RegimeOld Regime Gross Income₹12,00,000₹12,00,000 Standard Deduction₹75,000₹50,000 Taxable Income₹11,25,000₹9,75,000 Tax Before Cess₹93,750₹1,02,500 Cess (4%)₹3,750₹4,100 Total Tax₹97,500₹1,06,600

*New regime saves ₹9,100 in this case*

Section 87A Rebate

If your taxable income is ≤ ₹7,00,000 (new regime), you get full rebate on tax.

Example:

Salary: ₹7,75,000

Standard Deduction: -₹75,000

Taxable Income: ₹7,00,000

Tax: ₹20,000

Section 87A Rebate: -₹20,000

Net Tax: ₹0

Surcharge for High Earners

Taxable IncomeSurcharge ₹50L - ₹1Cr10% ₹1Cr - ₹2Cr15% ₹2Cr - ₹5Cr25% Above ₹5Cr37%

Key Tax Planning Tips

Maximize 80C - EPF, PPF, ELSS, Insurance

Use 80D - Health insurance for family

Claim HRA - If paying rent

NPS for extra ₹50K - Section 80CCD(1B)

Home loan interest - Up to ₹2L deduction

Calculate your exact tax with our Income Tax Calculator.